Mitsui O.S.K. Lines, Ltd. Acquires LBC Tank Terminals

Mitsui O.S.K. Lines, Ltd. (“MOL”) has announced acquisition LBC Tank Terminals Group (LBC”), one of the world’s largest independent tank terminal companies, to strengthen its chemical logistics business. The sale and purchase agreement for $1.7 billion was signed on March 7.

LBC Tank Terminals Houston. Photo courtesy of MOL.

LBC primarily handles and stores chemicals, operating seven terminals in the world's leading chemical hubs in Europe (Antwerp and Rotterdam) and the U.S. Gulf Coast region (Houston, Freeport and Baton Rouge). With a total storage capacity of approximately 3 million cubic meters, berth facilities, pipelines and loading facilities for rail and truck transport, LBC supports the supply chains of customers such as chemical manufacturers and energy companies, through storage services at shipping and arrival ports.

MOL Group positions the chemical logistics business as a business of growth, and this acquisition is part of that strategy. MOL has already expanded their business scale in the chemical tanker business by acquiring shares in Nordic Tankers in 2019 and Fairfield Chemical Carriers in 2024, boasting one of the largest fleets in the world. With the acquisition of LBC, MOL has gained onshore storage capabilities at tank terminals and expanded their lineup to include everything from maritime transport to small-lot transport using tank containers.

In addition, with demand for the transportation of ammonia and CO2 expected to grow as a result of a more decarbonized society, MOL Group will accelerate the development of its next-generation energy business by adding onshore storage to its logistics offering through the acquisition of LBC.

LBC plans to expand its business by increasing tank capacity, and based on these plans, the investment return from this acquisition is expected to be approximately 10%. Moving forward, MOL aims to achieve further growth by leveraging synergies with chemical tanker business, and tank container business, as well as advancing its next-generation energy business.

The transaction closing subject to obtaining permits and approvals from the relevant authorities. The acquisition of LBC is in line with MOL Group's "BLUE ACTION 2035" management plan to become a Social Infrastructure Group as it will rebalance their Group portfolio to non-shipping revenues and assets and a more stable revenue business and reduce the exposure to market driven shipping business.